Posts Tagged ‘Eni’

By Hugo Miller , Kelly Gilblom , and Sergio Di Pasquale: 24 May 2018, 08:40 BST Updated on 24 May 2018, 10:23 BST

A briefcase seized from a Geneva apartment two years ago could be the key to an Italian bribery case against Royal Dutch Shell Plc and Eni SpA — if it makes it to Milan in time.

The bag held SIM cards, Nigerian passports, a laptop and a hard drive containing more than 40,000 documents, and belonged to Emeka Obi, according to a spokesman for the Geneva Prosecutor’s Office. Swiss prosecutors found it during a raid for an unrelated investigation and are trying to get it to their Italian colleagues, who are prosecuting Obi as an alleged middle man in a $1.1 billion kickback scheme involving the energy companies vying for a Nigerian oil license.

Obi’s lawyers persuaded a Geneva judge to put the contents of his briefcase under seal, citing his rights to privacy. Now a decision by Geneva’s Measures of Constraint Court on whether to lift that seal is expected as soon as this month.

While officials in Milan have moved forward with charges against the oil companies without the briefcase, the evidence could strengthen the graft case. The trial, which centers around events in 2011, begins on June 20. Milanese Prosecutor Fabio De Pasquale said he has “sent more reminders” to the Swiss saying he wants the briefcase, underscoring its importance. read more

BY SAHARA REPORTERS, NEW YORK: MAR 05, 2018

A statement by a Civil Society organization monitoring the trial of Royal Dutch Shell and Italian ENI executives over multibillion-dollar bribery has revealed that Nigeria’s Attorney General, Abubakar Malami is working against Nigeria’s interest as he sent a rookie lawyer to represent Nigeria at the court trial. In the opening hearing today, the lawyer identified as Hillary Seidu told the court Nigeria doesn’t want to seek any damages from the indicted multinational corporations.

A statement by a Civil Society organization monitoring the trial of Royal Dutch Shell and Italian ENI executives over multibillion-dollar bribery has revealed that Nigeria’s Attorney General, Abubakar Malami is working against Nigeria’s interest as he sent a rookie lawyer to represent Nigeria at the court trial. In the opening hearing today, the lawyer identified as Hillary Seidu told the court Nigeria doesn’t want to seek any damages from the indicted multinational corporations. read more

Royal Dutch Shell Plc and Eni SpA are going to trial in Italy over bribery charges involving an oil field in Nigeria. Two things are unusual about the case. One is the sheer scale of the sum involved — $1.1 billion. The other is that the defendants include Eni’s Chief Executive Officer Claudio Descalzi, the company’s former CEO and a former top executive at Shell. The trial begins Monday in Milan.

1. What was the $1.1 billion for?

It was paid by the companies to the Nigerian government in 2011 for a license to drill in deep waters off the Nigerian coast. The license had been in dispute for years. It had originally been awarded in 1998 by the country’s military dictator, Sani Abacha, to Malabu Oil and Gas Ltd., a Lagos-based company connected to then-Petroleum Minister Dan Etete. Under successive governments, the license was canceled, awarded to Shell, and then awarded to Malabu again before the 2011 deal. Shell and Eni also paid the government about $200 million as a signature bonus — a onetime fee charged by some oil-producing nations. read more

Royal Dutch Shell and Eni are about to go on trial over an alleged bribery scheme to secure a valuable oil field

Dutch investigators, too, are on Shell’s back. They raided its offices in The Hague in 2016 and tapped the phone of Ben van Beurden, Shell’s current chief executive. A sizeable team of Dutch investigators is still working on the case…

…informed Eni that America’s FBI, which was following the OPL 245 money trail, had contacted him about testifying…

Both firms would face fines not only in Europe but possibly also in America, whose crime-busters could use the deferred-prosecution agreements from 2010 to brand Shell and Eni repeat offenders, calculating their fines accordingly.

Mar 3rd 2018

RESOURCE-RICH Nigeria has long ignited interest from oil firms, but it can be a dangerously combustible environment when it comes to the risk of corruption. Two firms caught up in scandals are Royal Dutch Shell and Eni, Italy’s state-backed energy group. In 2010 both entered into deferred-prosecution agreements with America’s Department of Justice after being implicated in separate Nigerian bribery schemes. But those pale beside a case involving the two companies that is set to go to trial in Milan on March 5th. read more

Extract taken from FT article relating to OPL 245 Shell/ENI/Malabu Oil Deal/Dan Etete/Malcolm Brinded billion dollar scandal: 

Eni reports record oil and gas production

Andrew Ward, Energy Editor: 16 FEB 2018

Eni’s strong performance has been clouded by allegations of bribery related to a $1.3bn deal in 2011 to acquire one of Nigeria’s largest untapped oilfields. Mr Descalzi and several other current and former executives are due to stand trial for alleged corruption in Milan in March. Mr Descalzi has denied wrongdoing and Eni’s board has maintained its “full confidence” in him. read more

Mr. Brinded said: “I have done nothing wrong and believe that will become clear in any legal proceedings. I stand by my view that there is absolutely no basis for the charges against me.”

By Eric Sylvers in Milan and Sarah Kent in London Published December 20, 2017 FeaturesDow Jones Newswires

An Italian judge Wednesday indicted Royal Dutch Shell PLC, the chief executive of the Italian oil-and-gas company Eni SpA and other industry executives on corruption charges connected to a 2011 deal to acquire drilling rights off the coast of Nigeria.

Prosecutors say in court documents that Eni CEO Claudio Descalzi and the other executives at both Shell and Eni knew that most of the $1.3 billion Eni and Shell paid to the Nigerian government to acquire the drilling rights would be distributed as bribes. Prosecutors will argue that Goodluck Jonathan, the Nigerian president at the time of the deal, received part of the kickbacks, according to court documents. read more

By Andrew Oota, Bayo Oladeji, Bode Gbadebo, By George Agba, By Jonathan Nda-Isaiah:— Jan 28, 2016 

In his quest for more potent laws against money laundering and to rev up the fight against corruption, President Muhammadu Buhari yesterday presented two bills before the Senate for amendment.

They are the Money Laundering Prevention and Prohibition Bill 2016 and the Mutual Legal Assistance in Criminal Matters Bill 2016.

The president, in a letter to the Senate president, Bukola Saraki, which was read on the floor of the Senate, sought expeditious consideration of the two bills for more potent war against financial crimes in the country. read more

Nigerian auditors find NNPC failed to remit $11.6 bil in LNG export revenue

NNPC holds 49% equity in NLNG on behalf of the Nigerian government, with partners Shell (25.6%), Total (15%) and ENI (10.4%.)

11 June 2015

State-owned Nigerian National Petroleum Corporation has not remitted $11.6 billion in dividends and loan and interest repayments earned from exports from the Bonny LNG plant from 1999-2012, the country’s oil industry auditors said late Tuesday.

NNPC could not immediately be reached for comment Wednesday.

The Nigerian Extractive Industry Transparency Initiative, or NEITI, said in a statement that the earnings represent NNPC’s share of 49% equity ownership in Nigeria LNG Ltd., owner of the six-train, 22 million mt/year Bonny LNG plant. read more

Blog by Barnaby Pace, 13 May 2015

The most senior managers at oil giant Eni appear to have misled shareholders over the company’s actions in a corrupt oil deal at its 2014 AGM. This is very important – as they gather for the 2015 meeting, shareholders in Italy’s biggest company should expect straight answers over a deal which poses real risks to their investments. The corruption at the heart of the deal deprived the Nigerian state of over U.S. $1.1 billion, has triggered investigations by authorities in three countries, and could ultimately lead to the Eni and its partner Shell losing access to the oil block. read more

FROM A NIGERIAN NEWS MAGAZINE: MARCH 2015

Nigeria’s Naira firmed 1.13 percent against the dollar on the interbank market in thin trade on Monday, supported by dollar flows from two energy companies, traders said.

The naira closed at 199.7 to the dollar compared with 202 on the interbank market on Friday, dealers said.

The central bank had set its intervention rate at 196.8/197.8 to the dollar on Monday, but dealers said the regulator had not yet sold dollars to lenders by 1302 GMT.

The Nigerian unit of Royal Dutch Shell sold an undisclosed amount of dollars while Eni sold $15 million, lending support to the naira, traders said. read more

In October 2014 the media reported that Italian prosecutors were alleging that half of the $1.1 billion paid for an oil producing lease (OPL) by Eni and Royal Dutch Shell had gone on bribes to Nigerian politicians, intermediaries and others.

Extracts from an article by Babajide Oladipo Ogundipe: 8 December 2014

In October 2014 the media reported that Italian prosecutors were alleging that half of the $1.1 billion paid for an oil producing lease (OPL) by Eni and Royal Dutch Shell had gone on bribes to Nigerian politicians, intermediaries and others. Reuters reported that Italian prosecutors had placed Eni’s former and current chief executive officers under investigation for alleged international corruption and had requested their UK counterparts to assist in freezing suspect assets. The prosecutors alleged that at least $533 million had been paid out to Nigerian officials and others as part of the scheme. The two individuals under investigation, along with Eni, denied any wrongdoing read more

A High Court in the United Kingdom has lifted a secrecy order imposed on a 2013 legal challenge by The Corner House of a decision by the Crown Prosecution Service (CPS) not to freeze some $215million alleged proceeds of crime from a corrupt Nigerian oil deal. Shell and ENI have denied paying any money to Malabu Oil and Gas. But they were aware and in agreement that the deal was for the benefit of Malabu.

By Edegbe Odemwingie: 7 November 2014

A High Court in the United Kingdom has lifted a secrecy order imposed on a 2013 legal challenge by The Corner House of a decision by the Crown Prosecution Service (CPS) not to freeze some $215million alleged proceeds of crime from a corrupt Nigerian oil deal.

The fund arose from the sale of one of Nigeria’s largest offshore oil concessions, known as OPL 245 to subsidiaries of oil multinationals, Royal Dutch Shell and ENI.

Police in the UK and magistrates in Italy are now formally investigating the deal. read more

The article notes the involvement of the metropolitan police, but surely this is beyond the remit of the police involved? Where are the Dutch police, Interpol and Europol in this affair? Where is the SEC, and the authority that enforces the FCPA? It is simply not enough to say that Shell is “not under investigation”.

FROM A REGULAR CONTRIBUTOR

John

I don’t know if you saw yesterday’s article (below) in Upstream about the Nigerian OPL245 case, but it seems that a large number of the Malabu payments have been traced.

If the article is to be believed (and Upstream is usually quite good) it appears that Shell was unaware of the payments being made on behalf of their joint venture with ENI. If they really did not know that these payments were being made, Shell were not acting in the interests of their shareholders – it is hard to believe that Shell really agreed to pay their share of $600 million out of a total of $1.2 billion without investigating where the funds were going. read more

Vanguard cartoon from allAfrica.com article: “Nigeria: U.S. Report Shows Corruption, Rights Abuses”

FROM A REGULAR CONTRIBUTOR 

Safe Sex and Corruption in Nigeria – OPL245

In the Economist article from last year – Safe sex in Nigeria – the numbers simply do not add up. The explanation given is that “others” had benefited from the proceeds of the OPL 245 sale to Shell and Eni.

The obvious conclusion is that these would have been people directly connected to the Nigerian government and Etete.

One possible conclusion that is not discussed is that people within ENI and/or Shell may also have benefited during the distribution of the funds. It would not be the first time that “conflicts of interest” had arisen in Shell and ENI. read more

Can’t help wondering whether Malcolm Brinded will be “helping the police with their enquiries” regarding OPL245 as he was in charge of E&P at Shell at the time. Assuming that Shell/ENI lose the block, I presume there will be a $550 million hole in the Shell accounts to explain…

By John Donovan

Claudio Descalzi, the CEO of oil company Eni and one of his director colleagues are under investigation, suspected of involvement in the corruption of Nigerian politicians. 

Extract from a Bloomberg news report “Eni says CEO probed over $1.1billion Nigeria deal….”

Eni teamed with Royal Dutch Shell Plc in 2011 to buy Oil Prospecting License 245 for $1.1billion. The deal was challenged last year by a Nigerian parliamentary committee, which recommended revoking the rights. The acquisition process was “highly flawed,” the committee said. Global Witness, a London-based corruption watchdog, has also criticized the deal and the involvement of Dan Etete, a former Nigerian oil minister. read more

Extracts from a Motley Fool article by Rupert Hargreaves published 28 July 2014

In total, Kashagan is now expect to cost a total of $136 billion, more than 140% above initial estimates. Production has been consistently delayed; the most recent delay, which occurred at the end of last year, concerns the project’s pipelines. At present, the project is being overseen by Italy’s Eni, although ExxonMobil is shortly set to take over. Shell, Eni, and Total all have a 16.8% stake in the project, and Morgan Stanley’s analysts believe that as a result of the delays, these three companies will have their 2016 net income estimates reduced by $500 million each. That is a large figure, even for these oil giants. read more